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(Kitco News) - Comex gold futures prices are trading near unchanged and hovering near a two-month high in early U.S. dealings Tuesday. The bulls have established a price uptrend on the daily bar chart to suggest prices can continue to trade sideways to higher in the near term. December gold was last down $0.40 at $1,365.40 an ounce. Spot gold was last quoted up $0.10 at $1,366.40. September Comex silver last traded down $0.201 at $22.96 an ounce.

While the market place can still be characterized as quieter, summertime trading conditions, the recent sharp drops in the Indian Rupee and the Indonesian Rupiah currencies is becoming an increasing concern to the market place. European stock markets were lower Tuesday, partly on worries about an “Asian contagion” situation that has in the past roiled markets worldwide. Rising interest rates in the major world economies has put pressure on the periphery currencies. The higher rates in the major economies have started to reverse the flows of investor monies that had been moving into the periphery country markets the past few years. Any Asian currency contagion would likely prompt keen safe-haven demand for gold.

Key data points this week will be the Federal Reserve’s FOMC minutes that are released Wednesday and some Chinese economic data on Thursday. Traders will be looking at the minutes for some clarity on the near future path of U.S. monetary policy. There is a world central bankers meeting in Wyoming at mid-week, but Fed Chairman Bernanke will not even attend it and no major proclamations are expected to come out of that event.

Traders and investors are still watching the Egypt unrest, which continues to see violence between citizens and government militia. Any escalation in violence is likely to impact the market place, and could also prompt a rise in demand for safe-haven assets, including gold.

In the key “outside markets,” the U.S. dollar index is lower Tuesday morning. The greenback bears have the overall near-term chart advantage. Nymex crude oil futures prices are also weaker. The crude oil bulls still have the overall near-term technical advantage.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, and the Chicago Fed national activity index.

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The London A.M. gold fix is $1,365.75 versus the previous London P.M. fixing of $1,365.00.

Technically, December gold futures prices hit a two-month high Monday. Gold bulls and bears are now on an overall level near-term technical playing field but the bulls have the near-term momentum. A seven-week-old uptrend is in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,400.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,300.00. First resistance is seen at the overnight high of $1,369.60 and then at $1,375.00. First support is seen at $1,357.00 and then at the overnight low of $1,351.60.

September silver futures prices hit a three-month high Monday and bulls have solid upside technical momentum and have the overall near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $24.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $22.00. First resistance is seen at the overnight high of $23.195 and then at Monday’s high of $23.605. Next support is seen at $22.50 and then at the overnight low of $22.28.

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